KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** What relationship can GC have with customer and alarm co / sales tax / ISC EAST meetings October 14, 2026 *************************** Private meetings at ISC EAST *************************** To arrange a private meeting with K&K and staff at ISC East on November 4 or 5 please contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com. We are planning half hour appointments between 10:30 and 3:30 on November 4 and 5. If you think you need more time let us know. We look forward to seeing you at ISC; meetings will be outside the hall at the food court area. ************************* comment on What relationship can GC have with customer and alarm co from article on September 30, 2026 and Sale Tax issues ************************* Ken, Great response to “name withheld” in your September 30th thread. Mr. Withheld is a general contractor and was wondering what their role was in installation, servicing, and monitoring of alarm systems. As usual your response was spot on and covered the licensing requirements in multiple states. One thing for Mr. Withheld, any general contractor, or alarm company should keep in mind is sales and use tax issues in alarm installations. This can be very complicated and, of course, the treatment differs by state and type of installation. For example, in Texas all work requiring licensure under Section 1702 of the Texas Occupational Code (the Private Security Act) is taxable to the customer by the entity selling the installation. This generally falls on the shoulders of the general contractor. The alarm company should get a resale certificate from the General Contractor. If it is a fire or other non-intrusion system the rules change. For a fire alarm installation in new commercial construction the alarm company is generally considered the end user and pays use tax on the materials but there is no sales tax on the labor. This changes if it is an itemized invoice so it is important to understand how the general contractor is billing it to the customer. Many alarm companies, and their CPAs, are surprised to learn that CCTV and access control are regulated by Section 1702 and the services, including labor, are subject to sales tax in Texas. Many companies find this out during a sales tax audit. If your company is doing work for general contractors pay attention to Ken’s advice and make sure that the sales and use tax is being handled properly. Mitch Reitman 817 698 9999 x 101 Reitman Consulting Group Fort Worth, TX ************************* Response ************************* Licensing is still an issue general contractors and alarm companies have, mainly because they prefer not getting the license. Enforcement is stepping up and just like that drive from NY to CA without a drivers license, sooner or later you’re bound to get caught. It’s not that difficult to license the company. K&K can help find a suitable qualifier and the K&K Qualifier Agreement is what you need to formalize the relationship. Those of you who don’t have the alarm license needed in your state should be very careful about what you have on your company website. Mentioning licensed alarm work will get you tagged; it’s how many audits start. As far as sales tax and proper reporting, I’ll leave that to Mitch, and like the license I would not recommend ignoring compliance. ************************* STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
